Australian shares closed up 1.1 percent on Monday led by gains in the big banks and resources stocks following a modest lead from Wall Street at the end of last week, dealers said. The benchmark S&P/ASX 200 index closed up 73.3 points at 6,535.2, while the broader All Ordinaries closed up 75.2 points or 1.2 percent at 6,601.3.
"I didn't expect it to follow through quite so strongly," said Andrew Sekely, head of Australian equities at Intersuisse. "The US market has been all over the place in recent days, so the fact we have recovered as strong as we have I think is a pretty good performance."
A total of 1.41 billion shares worth about 4.73 billion Australian dollars (4.23 billion US) changed hands, with 730 stocks closing up, 561 stocks closing down and 349 stocks unchanged. BHP Billiton gained 44 cents or 1.1 percent to 41.59 dollars. Its potential take-over target, Rio Tinto, put on 4.79 dollars or 3.7 percent to reach 136.00 dollars.
Woodside closed up 1.63 dollars at 48.50 as its 760-million-US dollar Stybarrow oil joint venture with BHP Billiton offshore from Western Australia started first production. Gold miner Newcrest Mining gained 1.09 dollars, or 3.38 percent, to 33.34 dollars despite a fall in the spot price of gold.
National Australia Bank gained 49 cents to 42.65 dollars, Commonwealth Bank gained 58 cents to 60.55 dollars, ANZ climbed 35 cents to 28.05 dollars and Westpac put on three cents to 28.02 dollars. Telstra lost a cent to 4.65 dollars.
Woolworths gained 41 cents to 32.61 dollars. Buildings products firm James Hardie Industries gained 35 cents or 5.54 percent to 6.67 dollars despite reporting a 12 percent fall in first half net profit.